ABSTRACT
This
project was carried out to the practice of social responsibility of the
performance of SMES in Agege Local government Area of Lagos-State. The data for
the study were collected through self administered questionnaire, 60
respondents were covered in this summary. Data was analyzed using Chi-square
and the result shows that the consistent of social responsibility have an
effect on organizational profitability.
The most obvious place to start with is the root
of business (investment). The society especially prospective owners, investors,
government and financial institutions can be of tremendous help in bringing
ethical consideration to bear on financial investment. People should be careful
of where money goes and what it is used for. Investors should think not only
about financial return, but also about the social and economic result of their
investment decision.
It
was concluded that government
regulation as it relate to business should be such, that will be efficient and
at the same time suiting to all business. It is believed that if all activities
involved in social responsibility are worth doing at all, it means they are
worth doing well.
TABLE
OF CONTENT
Title
page i
Certification ii
Dedication iii
Acknowledgement
iv
Abstract v
Table
of content vi
CHAPTER ONE: INTRODUCTION
1.1
Background of the study 1 – 4
1.2
Research Questions 4
1.3
Research Hypotheses 5
1.4
Statement of problems 5 – 6
1.5
Purpose of the study 6
– 7
1.6
Significance of the study 7
1.7
Scope of the study 7
1.8
Definition of terms 8
1.9
Organization of the study 8
References 9
CHAPTER TWO: LITERATURE REVIEW
2.0
Social Responsibility and ethics 10 – 13
2.1
Approaches to Corporate Social Responsibility 14 – 16
2.2
Some Approaches to Social Responsibility in Nigeria 17 – 18
2.3
Other Costs of Neglect of Social Responsibility 18 – 19
2.4 Benefits
of Social Responsibility to Business Firm 19 – 21
2.5
Rationale For Corporate Social Responsibility 21 – 24
References 25 – 26
CHAPTER THREE: RESEARCH METHODOLOGY
3.0 Introduction 27
3.1
Restatement Deign 27
3.2 Restatement of research questions 27
3.3
Research Hypothesis 28
3.4 Population of the study 28
3.5 Sample size 29
3.6 Data Collection Method 29
3.7 Data
Analysis 29
3.8 Limitation of the study 30-31
References 32
CHAPTER FOUR: PRESENTATION AND ANALYSIS
OF DATA
4.1 Introduction 33
4.2 Analysis of Bio-Data 33 – 43
4.3 Analysis of hypothesis using chi-square 43 – 44
4.4 Discussions 54
References 46
CHAPTER FIVE: SUMMARY OF FINDING,
CONCLUSION AND RECOMMENDATION
5.2 Conclusion 49 -
50
5.3 Recommendations 50 – 51
Bibliography 52 – 53
Questionnaires 54 –
60
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
This
chapter distinguishes between socially responsible policies and policies that
simply represent sound business practice. Attention to customer preferences is
sound business practice and requires no justification other than the
remuneration it provides. Similarly, creating a culture that builds mutual
commitment between the firm and its employees requires no justification beyond
the benefit it provides. In contrast, responding to a community need for low,
income housing is beyond the normal scope of sound business practice. The
strategic use of corporate social responsibility to increase profit thus should
be distinguished from morally motivated actions.
The
motives for taking action are also important for distinguishing between
socially responsible actions and actions that are forced on the firm by its
environment. Negotiating with an interest group to minimize the damage it could
impose should be should be distinguished from an action taken voluntarily by a
firm. Social responsibility is the management philosophy, policy, procedures
and actions that have the advancement of society’s welfare as one of its
primary objectives.
In
dynamic society like ours, business organizations either in the private or
public sector are being called upon to perform their social responsibilities to
the society. The relationship between organization, society and participants is
very complex yet dynamic. The notion of social responsibility has emerged out
of dynamism of the relationship between these parties. Corporate organizations
have grown in size, the level of education has significantly increased and
people now ask a lot more questions about their rights and privileges. Related
to this is the fact that the awareness of the social impact of business
activities on the society as a whole is enormous both directly and indirectly.
For as long as a business organization remains a sub-system of the society, the
business manager is left with no other choice but to be concerned with social
responsibility is a nebulous concept that has been described in a number of
ways. Most writers on social responsibility see the concept as the disposition
of an organization to exhibit “missionary rather than mercenary”. Attitudes
towards the society social responsibility can be defined as “the intelligent
and objective concern, which restrains individual or corporate behaviour from
ultimately destructive activities no matter how immediately profitable, and
leads to the direction of the positive contribution of human betterment”
(Steiner, 2001).
Presumably,
corporate executive as agents of the owners are to be responsible for
conducting he business in accordance with the desire of the owners while confirming
to the basic rules of the society. The responsibility has three broad facets
(Edward, 2002):
1.
Contribution to charity.
2.
Elimination of social costs.
3.
The adoption and observance of ethical codes
aimed at reducing business malpractice.
In
summary, Nigerian business organization and other type of business must be seen
in many actions domains can pursue social responsibility in areas such as:
Concern for ecology and environment, Commitment to quality, Truth in
advertisement, Customer’s satisfaction and education. Other concerns includes:
Service to community needs, fair employment practices, progressive labour relations employment assistance and
corporate philanthropy (Forters, 2002).
The
strength of an organization’s commitment to corporate social responsibility
ranges from low to high. At the low end of the range is an obstructionist
approach (fight the social demands), which reflects mainly economic priorities.
A defensive approach (“do the minimum legally required”) indicates the least commitment
to ethical behaviour it seeks to protect the organization by doing the minimum
legally required to satisfy expectation. Accommodative approach (“do the
minimum ethical required”) is an acknowledgement of the need to support social
responsibility. Organizations adopting such strategy accept their social
responsibility role and try to satisfy criteria of economic, legal and ethical
responsibility.
Finally,
the proactive (assumed leadership in social initiatives) is designed to meet
all the criteria of social performance. Managers taking a proactive approach
activity embrace the need to behave in socially responsible and go out of their
ways to learn about the needs of different stakeholders and are willing to
utilize organizational resources to pursue the interest of the stakeholders
(Friedman, 2009).
1.2 RESEARCH
QUESTIONS
û Does
consistent social responsibility have an affect in organizational
profitability?
û To
what extent does social responsibility affect organizational market share?
û Does
intensive social responsibility have an impact on organization sales volume?
û To
what extent does social responsibility reduces social crisis.
1.3 RESEARCH
HYPOTHESES
û H0:
There is no significant relationship between social responsibility and
organizational profitability.
H1:
There is significant relationship between social responsibility and
organizational profitability.
û H0:
There is no significant relationship between social responsibility and
organizational market share.
H1:
There is significant relationship between social responsibility and
organizational market share.
û H0:
There is no significant relationship between social responsibility and
organizational sales volume.
H1:
There is significant relationship between social responsibility and
organizational sales volume.
1.4 STATEMENT
OF PROBLEMS
Advocate
of social responsibility observed that expectations of various groups in the
society are not being met by organizations. These groups are creditors, current
and retired employees, customers, suppliers, competitors, all levels of
government community environment, the human right organization etc. Their
expectation ranges from safe and meaningful jobs, clean air and water, good pay
packages, charitable donations, safe products sponsoring of academic research,
scholarship awards, sports development etc. The research study is therefore
designed to identify: The responsibility a business organization owes the
society and its effect on its productivity, the areas in which business organization
can help the society and vice-versa as well as the implications vis-avis
benefit to the two parties. Problems encountered by the business organization
in Nigeria
in the course of discharging their social responsibility: profitability market
shares, sales volume.
1.5 PURPOSE
OF THE STUDY
The
general objectives of the study is to examine the effect of practicing social
responsibility on the performance of small and medium scale enterprise (SMES)
in Agege Local Government area of Lagos State.
Thus,
in order to achieve the above objective, the following specific objectives
shall serve our guide.
û To
examine the impact of social responsibility on organizational profitability.
û To
determine the extent to which social responsibility affect organizational
market share.
û To
ascertain the extent to which social responsibility affect organizational
market share.
û To
examine the effect of social responsibility on social crisis.
1.6 SIGNIFICANCE
OF THE STUDY
At
the end of the research work, it is hoped that the research would describe the
method, techniques and means by which the practice social responsibility
enhanced the performance of SMES. Thus, becoming a useful source of material
for teaching and future research purpose.
It
will exhibit the benefit enjoyed by both organizations and communities that
inculcate corporate social responsibility.
1.7 SCOPE
OF THE STUDY
This
study would focus extensively on the social responsibility on the performance
of SMES in Agege Local Government Area of Lagos State.
This
study will cover and examine the effect of social responsibility on social
crisis.
This
scope will examine the impact of social responsibility on organizational
profitability.
1.8 DEFINITOIN
OF TERMS
û Social Responsibility: It
is the management philosophy, policy, procedures and actions that have the
advancement of society’s welfare as one of its primary objectives.
û Accommodative Approach: Is
an acknowledgement of the need to support social responsibility.
û Proactive Approach: Is
designed to meet all the criteria of social performance.
1.9 ORGANISATION OF THE STUDY
This
study contains five chapters which are as follows:
û The
first chapter shall contain the background, the objectives, statement of the
study, research question of the study, significance of the study, scope of the
study and definition of terms.
û The
second chapter shall contain the literature review of the study.
û The
third chapter shall contain the research methodology of the study, the research
hypothesis of the study.
û The
fourth chapter shall contain the data presentation and interpretation of
regression results.
û The
fifth chapter shall contain the summary of findings, conclusion and appropriate
recommendation.
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